BlackRock says stablecoins need to remain closely connected to bank deposits and central-bank money if they are going to work as regulated payment and settlement assets.
Nikhil Sharma, BlackRock’s head of digital assets, said the key issue is the “singleness of money.” In simple terms, different forms of the same currency should remain exchangeable at the same value. Users need to know what they own, what supports it, how they can access it, and what protection they have if something goes wrong.
Sharma explained that if someone pays with a dollar stablecoin, the receiving bank should be able to accept it and convert it into a bank deposit without creating uncertainty about its value or the customer’s ability to claim the funds.
Banks would also need systems that allow payments to move between financial institutions. Sharma said central banks could provide the final settlement layer through traditional fiat money or wholesale central bank digital currencies.
Different forms of digital cash can give users more choices, but they also come with different risks. A bank deposit is a liability of the bank, while a stablecoin represents a claim based on the issuer’s structure and terms. Central-bank money is a direct claim on the central bank.
This means stablecoin users depend on the quality of the issuer’s reserves, custody arrangements and ability to process redemptions. A stablecoin may normally trade close to $1, but concerns about reserves or liquidity can cause it to fall below that level.
According to Sharma, simply making different digital assets interoperable is not enough. Banks must be able to accept stablecoins, convert them into deposits and connect them to a reliable final settlement system.
Philipp Müller of the Swiss National Bank said commercial banks could issue stablecoins if they choose to do so. He added that the central bank’s role would be to provide banks with a safe payment method that meets their needs. This could involve wholesale CBDCs or traditional central-bank money.
The issue is also important for the U.S. dollar stablecoin market. Large dollar-backed stablecoins generally hold reserves in cash, U.S. Treasury bills and other liquid assets to support their value and redemptions.
The GENIUS Act, enacted in July 2025, established a federal framework for payment stablecoins in the United States. Under the law, permitted issuers are subject to requirements covering areas such as reserves, disclosures and regulation.
Dollar stablecoins can make it easier to move dollar-based value across borders and outside traditional banking hours. At the same time, their growth can increase demand for the assets used to back them, including short-term U.S. government debt.
However, a stablecoin backed by high-quality reserves is not automatically the same as an insured bank deposit. Redemption rules, legal claims, eligibility and deposit protection can differ depending on the product and jurisdiction.
Sharma also pointed to the importance of settlement infrastructure as tokenized markets grow. Banks need to accept and connect different forms of digital money, including stablecoins and tokenized deposits, before transactions can settle smoothly across institutions.
This becomes especially important for tokenized securities because moving an asset on a blockchain does not guarantee that the payment side can settle at the same time. Blockchain markets can operate around the clock, while traditional banking and dollar payment systems may have more limited operating hours.
During another panel, ARK Invest’s Lorenzo Valente estimated the digital-asset market at around $3 trillion, with stablecoins making up roughly $300 billion and tokenized assets accounting for about $30 billion to $40 billion.
Valente said crypto was largely a retail market during its first decade because institutions lacked the necessary tools, privacy and compliance systems. He argued that the market has grown enough to attract more institutional participation as those gaps are reduced.
The broader message from BlackRock’s Sharma was that stablecoins, bank deposits and central-bank money do not necessarily need to compete with each other. Instead, they need to work together through banking and settlement infrastructure so that different forms of money can continue to maintain a common value.
